BlackRock Inc. Acquires New Position in Home BancShares, Inc. $HOMB

Key Points

• BlackRock acquired 25.8 million Home BancShares shares worth approximately $735.6 million, giving it a 12.79% stake. Institutional investors collectively own 67.31% of the company.
• Home BancShares reported quarterly EPS of $0.64, beating estimates of $0.62, while revenue rose 8.9% year over year to $295.1 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $32.83.
• The company increased its quarterly dividend to $0.23 per share, or $0.92 annually, representing a 3.0% yield and a 38.02% payout ratio.

BlackRock Inc. bought a new position in Home BancShares, Inc. (NYSE:HOMB - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 25,766,839 shares of the financial services provider's stock, valued at approximately $735,643,000. BlackRock Inc. owned approximately 12.79% of Home BancShares at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the stock. Millennium Capital Advisors LLC bought a new stake in shares of Home BancShares during the 4th quarter valued at $1,450,000. Vanguard Group Inc. grew its holdings in Home BancShares by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 20,423,768 shares of the financial services provider's stock valued at $567,372,000 after buying an additional 621,751 shares in the last quarter. Bank of America Corp DE grew its stake in Home BancShares by 14.5% during the first quarter. Bank of America Corp DE now owns 886,006 shares of the financial services provider's stock valued at $23,860,000 after acquiring an additional 111,888 shares in the last quarter. Norges Bank bought a new position in Home BancShares during the fourth quarter valued at approximately $66,673,000. Finally, Capital Research Global Investors grew its holdings in shares of Home BancShares by 4.5% in the fourth quarter. Capital Research Global Investors now owns 5,588,267 shares of the financial services provider's stock valued at $155,242,000 after purchasing an additional 238,548 shares in the last quarter. Institutional investors own 67.31% of the company's stock.

Insider Transactions at Home BancShares

In other Home BancShares news, CEO John Stephen Tipton sold 12,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.59, for a total transaction of $379,080.00. Following the transaction, the chief executive officer owned 76,308 shares in the company, valued at $2,410,569.72. The trade was a 13.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 6.39% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on HOMB. Weiss Ratings raised Home BancShares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 5th. Piper Sandler reiterated an "overweight" rating and issued a $36.00 price target (up from $33.00) on shares of Home BancShares in a report on Friday, July 17th. Cantor Fitzgerald reissued an "overweight" rating and set a $31.00 price target (up from $30.00) on shares of Home BancShares in a report on Wednesday. Stephens lifted their target price on shares of Home BancShares from $32.00 to $35.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Home BancShares from $30.00 to $32.00 and gave the stock a "market perform" rating in a research note on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $32.83.

Home BancShares Stock Up 0.3%

HOMB stock opened at $30.28 on Friday. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.92 and a quick ratio of 0.92. Home BancShares, Inc. has a 12 month low of $25.50 and a 12 month high of $31.70. The company has a fifty day moving average price of $29.80 and a 200 day moving average price of $28.24. The company has a market cap of $6.06 billion, a price-to-earnings ratio of 12.51 and a beta of 0.69.

Home BancShares (NYSE:HOMB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 15th. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.02. Home BancShares had a net margin of 32.10% and a return on equity of 11.12%. The business had revenue of $295.10 million for the quarter, compared to analyst estimates of $288.70 million. During the same period in the previous year, the business posted $0.58 earnings per share. The business's revenue was up 8.9% compared to the same quarter last year. Sell-side analysts expect that Home BancShares, Inc. will post 2.51 earnings per share for the current year.

Home BancShares Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 3.0%. This is a boost from Home BancShares's previous quarterly dividend of $0.21. The ex-dividend date is Wednesday, August 12th. Home BancShares's dividend payout ratio (DPR) is currently 38.02%.

Home BancShares Company Profile

Home BancShares, Inc is a bank holding company based in Conway, Arkansas, operating through its primary subsidiary, Home Bank, National Association. Founded in March 1999, the company provides a comprehensive suite of banking services to individuals, small and middle-market businesses, and public entities. These services encompass deposit accounts, consumer and commercial lending, mortgage origination and servicing, treasury management, and wealth management solutions.

The company's core products include checking and savings accounts, certificates of deposit, and money market accounts, as well as a variety of loan offerings such as commercial real estate financing, equipment loans, agricultural lending, and residential mortgages.

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